[B]Fundamental Headlines[/B]
[I]• The Downside of Reducing Debt – Wall Street Journal
• Bernanke Calls for Regulator Council – Wall Street Journal
• IMF says world economy is recovering – Financial Times
• Lewis Resigns After Betting Bank of America on America When America Broke – Bloomberg
• IMF Raises 2010 Global Forecast to 3.1% From 2.5% as Asia Leads Recovery -Bloomberg[/I]
[B]
EURUSD- [/B]German retail sales report showed the steepest drop in a year as consumption in Europe’s largest economy unexpectedly fell by 1.5% versus forecasts of a gain of 0.2%. Apparel and automobile purchases dropped 5.9% and 4.6% respectively as Germans concerned over a weak labor market continue to retrench. Meanwhile, Euro-Zone unemployment reached a ten year high of 9.6% as companies continue cost cutting. The data reinforces concerns that the current recovery is fragile and governments need to maintain stimulus efforts to prevent another decline. To discuss this and other ideas visit the EUR/USD Forum.
[B]
GBPUSD– [/B]United Kingdom’s purchaser manager’s index declined to 49.5 in September from 49.7 in August, amid expectations for a 50.2 advancement. With the result below 50, executives of manufacturing companies have a less favorable outlook for business in the U.K. for a consecutive month following a brief expansion in July. The declining activity supports the BoE’s actions to extend their asset purchase program as they still see tight credit markets hindering future growth. To discuss this and other ideas visit the GBP/USD Forum.